https://www.taxtmi.com/caselaws?id=792990 Taxing statutes are presumed to operate prospectively unless Parliament clearly provides retrospective effect, and the law in force on the first day of the financial year governs assessment for that year. The Rajasthan HC held that the enhanced principal rate under section 115BBE, introduced by the Taxation Laws (Second Amendment) Act, 2016, could not be applied to financial year 2016-17 because the amendment was expressly effective from 01.04.2017 and contained no clear retrospective mandate from 15.12.2016. It further held that enhancement of the principal tax rate creates a substantive fiscal burden and cannot be implied retrospectively; section 271AAC, being dependent on section 115BBE, could not alter that result. en-us Wed, 27 May 2026 00:00:00 +0530 Fri, 05 Jun 2026 15:34:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=792990 Taxing statutes are presumed to operate prospectively unless Parliament clearly provides retrospective effect, and the law in force on the first day of the financial year governs assessment for that year. The Rajasthan HC held that the enhanced principal rate under section 115BBE, introduced by the Taxation Laws (Second Amendment) Act, 2016, could not be applied to financial year 2016-17 because the amendment was expressly effective from 01.04.2017 and contained no clear retrospective mandate from 15.12.2016. It further held that enhancement of the principal tax rate creates a substantive fiscal burden and cannot be implied retrospectively; section 271AAC, being dependent on section 115BBE, could not alter that result. Case-Laws Income Tax Wed, 27 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=792990